An IPO generally progresses through several distinct phases, which are broadly summarised below
IPO Timeline and Key Stages
Intention to float
The company officially announces its intention to float, outlining the highlights of the initial public offering proposal. Institutions and retail brokers will already have been invited to participate and will be working behind the scenes to prepare the offer for their customers.
Prospectus release
The company prepares and releases a prospectus, which investors should read in full before making any decision to invest.
Offer period
From the point the prospectus is released, the offer period begins. This is the bookbuilding period when indications of interest can be submitted, and it may last only a few days or several weeks.
Result of issue
Usually within a couple of days of the offer period ending, the company announces the result, including the final offer price. Applying for shares in an IPO does not guarantee you will receive your desired number of shares. If demand exceeds supply, you may be allocated fewer shares than you requested.
Admission
Once the allotment is finalised, the correct amount of cash is exchanged for your allocated shares at the final offer price, and the shares are placed in your account ready for the first day of trading on the exchange. From this point, investors who were not offered shares through the IPO process can buy shares on the trading venue, and those who received an allocation may begin trading their shares as they would with any other shares they hold.